Have you and your best friends ever imagined what it’d be like to start a business together? I know I have. The thought of sharing an office with the same people with whom you’ve traveled and gone to happy hour with for the past ten years sounds like it would be nothing but fun. If you find yourself considering this, it is important to think about the pros and cons of working closely with your friends.
Do you want to start a business with your friends?
An article I’ve found titled “The Pros and Cons of Starting a Business With Friends”, written by business owner Aron Sussman, discusses both the good and bad of creating a company with your closest pals. While many successful businesses have blossomed out of friendships, it is important to take a realistic look at what you’re getting into when working with someone you know on a more personal level.
Here is a summary of Aron’s pros and cons list.
THE PROS
You Trust Each Other
Having already known each other, you and your friend already have an honest relationship established. This personal history can alleviate mistrust within the company leadership, something that is fairly common.
You Can Speak Freely and Comfortably
Many of us do not feel as comfortable being completely honest with our coworkers and bosses as we do with our friends. In business, this can be detrimental to achieving the overall goals of the company. Working with friends, it’s easier to work through business conflicts openly and reach conclusions that all parties are happy with.
You Share the Same Vision of Leadership
Knowing that you went into business with the same ultimate goal and vision is conducive to maintaining a strong working relationship. This can be one of the many benefits of starting a business with your friends.
THE CONS
You Know Too Much
Having already known each other, you and your friend already have an honest relationship established. This personal history can alleviate mistrust within the company leadership, something that is fairly common.
Boundaries Are Fewer
There are some boundaries that you would normally not dare cross in the workplace. Know that when working with friends these lines most likely will be crossed. Aron warns that if you don’t feel comfortable being direct with your friend, going into business with them might not be the smartest choice.
You Risk a Power Struggle
When working with friends, it’s sometimes hard to establish who is truly the one in charge. It’s important to be aware that toes could be stepped on. Luckily, Aron says that many issues related to this are often solved with clear communication.
Read the full article with more of Aron’s insights below.
The Pros and Cons of Starting a Business with Friends
We became friends almost immediately after meeting in high school, and we’ve been buddies ever since. At the end of 2010 I was looking for office space for my old company, and the process seemed absurdly frustrating. I couldn’t believe that’s how it was done. Read more…
Rosy Jalifi, a Texan through and through, has inspired many to achieve their dreams. With a thirty-six-year tenure at the City of Austin, she's led initiatives that boosted entrepreneurship and the arts.
She's the brains behind the award-winning Small Business Development Program, recognized nationally for aiding over 25,000 entrepreneurs.
Her work earned the prestigious "Bright Idea" award from Harvard University's Ash Center.
A University of Texas alum, Rosy values teamwork and has held key roles in various Hispanic and leadership networks in Austin.
We became friends almost immediately after meeting in high school, and we’ve been buddies ever since. At the end of 2010 I was looking for office space for my old company, and the process seemed absurdly frustrating. I couldn’t believe that’s how it was done. Read more…
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